Budget deal reached after weeks of negotiations

Budget deal reached after weeks of negotiations

In Germany, it took weeks to finally find an agreement on the 2025 budget before the summer break. After 23 summit meetings, 80 hours of laborious negotiations between the leaders of the coalition in power in Germany, the alliance led by the social democrat Olaf Scholz associated with the Greens and the liberals even nearly broke up.

2 min

With our correspondent in Berlin, Pascal Thibaut

Germany is one of the least indebted countries in the Eurozone with a budget deficit that is not allowed to exceed 0.35% of gross domestic product. A situation a priori of the most comfortable, but which created a psychodrama. Respect for the debt brake anchored in the constitution forced the country whose growth is going down the drain to make 30 billion euros of savings.

The liberals led by Finance Minister Christian Lindner believe that the country has enough revenue and must set priorities. The Social Democrats and the Greens have argued for a relaxation of budgetary rules because of the urgent investment that Germany needs.

The Liberals won their case on respect for budgetary discipline and welcomed the reductions in charges for their fellow citizens. The left approves the increase in family allowances, additional support for social housing, increased investments and measures to boost growth next year.

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It wasn’t easy, but we found a compromise. ” said the German Chancellor Olaf Scholz. ” The alternative was not to throw in the towel and end the coalition. Germany must be a pole of stability in Europe today. »

The budget still needs to be approved by parliament in the autumn. But last night’s laborious deal allows the coalition to prove it can agree and hold out until the September 2025 elections.

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